The surplus of global base oils supply over demand fell to an eleven-month low in February after supply fell to a multi-year low.

The surplus of supply over demand fell to less than 200,000t in February, down from close to 600,000t in January and close to 670,000t in December.

The volume was the lowest since March 2022.

The surplus fell because of a slide in base oils supply by more than 450,000t in February from the previous month to the lowest in more than two years.

The size of the drop in supply was also the steepest in more than two years.

The supply included Europe, the Americas, Mideast Gulf and Asia-Pacific, including China.

Global base oils prices rose strongly relative to crude and diesel from late January, coinciding with the drop in surplus supply.